For the next 10 years, Kenner residents won't be able to blame the City Council if their gas bills rise. Atmos Energy has been supplying gas in Kenner on a month-to-month franchise agreement with City Hall since 2002, but on Thursday council members approved a 10-year contract. The new pact requires that Atmos pay the city a 2 percent...
For the next 10 years, Kenner residents won't be able to blame the City Council if their gas bills rise.
Atmos Energy has been supplying gas in Kenner on a month-to-month franchise agreement with City Hall since 2002, but on Thursday council members approved a 10-year contract.
The new pact requires that Atmos pay the city a 2 percent franchise fee, the same as the current charge.
It also calls for Atmos to maintain a certain number of payment centers in Kenner, has insurance requirements and an indemnification clause and gives customers the right to a hearing for bill delinquency, instead of immediately cutting off service, said Francine Weaker, an assistant city attorney.
A council amendment to defer the vote for two weeks failed. Deferral could have allowed time to work out a change giving this or a future council flexibility to set the franchise fee anywhere between 0 percent to 4 percent.
Councilman Kent Denapolis, who proposed the deferral, said he didn't want to lock the city into a franchise fee for 10 years. "I have a problem with voting on an agreement that goes way beyond my term as a councilman," he said.
Councilman Joe Stagni agreed. He said there are no plans to increase the franchise fee but that a later council should have the flexibility to raise or lower the fee.
However, Atmos officials told Weaker that any increase would be paid by the public, she said. And other council members said they don't want even the possibility of passing on a higher fee to current -- or future -- residents.
"I don't trust anything," said council President Jeannie Black. "We could have a super liberal council" in the future.